[Introduced February 20, 2013; referred to the Committee on
Government Organization; and then to the Committee on Finance.]

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A BILL to amend and reenact §29-26-2, §29-26-5 and §29-26-6 of the
Code of West Virginia, 1931, as amended; and to amend said
code by adding thereto eight new sections, designated
§29-26-7, §29-26-8, §29-26-9, §29-26-10, §29-26-11, §29-26-12,
§29-26-13 and §29-26-14, all relating to providing the West
Virginia Courthouse Facilities Improvement Authority with the
ability to issue bonds to raise funds for paying the costs of
approved modifications or construction of courthouse
facilities; defining terms; adding bond-related activities to
the powers of the authority; providing that moneys from the
West Virginia Courthouse Facilities Improvement Fund may be
disbursed for payment of debt service on bonds; authorizing
the authority to issue bonds; setting circumstances for bond
issuance and potential terms of bonds; authorizing repayment
of debt; permitting bonds be secured by trust agreement and
setting certain parameters; permitting refunding bonds;
clarifying that bonds by the authority are not a pledge of
faith and credit of the state, county, municipality or other
subdivision of the state; declaring bonds issued as negotiable
instruments under the Uniform Commercial Code; exempting all
bonds by the authority, as well as interest and income
thereon, from taxation by the state or any subdivision;
declaring that certain individuals have no personal liability
in relation to issuance of bonds; and granting cumulative
authority for exercising certain powers, including if no bonds
are issued by the authority.

Be it enacted by the Legislature of West Virginia:

That §29-26-2, §29-26-5 and §29-26-6 of the Code of West
Virginia, 1931, as amended, be amended and reenacted; and that said
code be amended by adding thereto eight new sections, designated
§29-26-7, §29-26-8, §29-26-9, §29-26-10, §29-26-11, §29-26-12,
§29-26-13 and §29-26-14, all to read as follows:

The following terms, wherever used or referred to in this
article, have the following meaning:

(a) "Approved modifications or construction of courthouse
facilities" means any modification or construction of a courthouse
facility which has been recommended for assistance by the authority
according to the requirements of section four of this article;

(c) “Bonds” means bonds, revenue bonds, notes or other debt
instruments issued by the authority pursuant to this article,
whether the interest thereon is taxable or tax exempt for federal
income tax purposes;

(c)(d) "Cost" means the cost of construction, renovation,
repair and safety upgrading of courthouse facilities; the cost of
land, equipment, machinery, furnishings, installation of utilities
and other similar items convenient in connection with placing a
courthouse facility in operation; and the cost of financing,
interest during construction, professional service fees and all
other charges or expenses necessary, appurtenant or incidental to
the modification or construction of a courthouse facility; and

(d)(e) "Courthouse facility" means buildings or structures,
or any portion thereof, which are owned by the county and occupied
exclusively by offices of county and judicial officials or by
courtrooms, county jails, or detention centers, day report centers
or other offices in which activities related to the operations of
county governments take place; and

(f) “Refunding bonds” means bonds issued by the authority
pursuant to this article to refund all, or any part of, bonds
issued by the authority pursuant to this article.

§29-26-5. Powers of the authority.

In addition to the powers set forth elsewhere in this article,
the authority may exercise the following powers when it considers
the exercise of these powers necessary and appropriate to carry out
and effectuate its responsibilities as defined by this article. The
authority may:

(a) Employ an executive director and an executive assistant as
may be necessary in the judgment of the authority and fix their
compensation;

(b) Acquire, hold and dispose of real and personal property
for its corporate purposes;

(c) Make bylaws for the management and rule of its affairs;

(d) Contract with and employ attorneys, bond counsel,
accountants, underwriters, financial advisors, trustees,
construction and financial experts, architects, engineers, managers
and such other employees and agents that are necessary in the
judgment of the authority and fix their compensation;

(e) Make contracts and execute all instruments necessary or
convenient to exercise the powers granted to it by this article;

(f) Renegotiate all contracts entered into by it whenever, due
to a change in situation, it appears to the authority that its
interests will be best served;

(g) Accept and expend any gift, grant, contribution, bequest
or endowment of money to, or for the benefit of, the authority,
from the State of West Virginia or any other source;

(h) Issue bonds from time to time, in accordance with the
provisions of this article, to fulfill the purposes set forth in
this article;

(h)(i) Identify any alternative sources of funding, whether
privately or publicly administered, and assist county applicants in
the securing of alternative sources of funding; and

(i)(j) Do all things necessary or convenient to carry out the
powers given in this article.

§29-26-6. The Courthouse Facilities Improvement Fund.

(a) There is hereby created in the State Treasury a special
revenue account to be known as the West Virginia Courthouse
Facilities Improvement Fund. The West Virginia Courthouse
Facilities Improvement Fund may receive any gifts, grants,
contributions or other money from any source which is specifically
designated for deposit in the fund.

(b) The authority shall undertake a study on the condition and
state of need of every courthouse facility throughout the State of
West Virginia, and shall determine the estimated cost of the
improvements which are necessary to bring each facility into
conformity with requirements outlined in this article. The
authority shall submit to the Legislature, on or before the first
day of January, two thousand two, a report which shall contain the
estimate of the cost, a plan for the financing of the cost, and an
estimated prioritized schedule for the implementation and financing
of the improvements to be made pursuant to the provisions of this
article.

(c) The moneys of the West Virginia Courthouse Facilities
Improvement Fund shall be disbursed by the authority for the
payment of debt service on bonds issued pursuant to the provisions
of this article, funding of approved modifications or construction
of courtcourthouse facilities and to pay expenses of the authority
in administering the provisions of this article.

(d) Any disbursements from the West Virginia Courthouse
Facilities Improvement Fund allocated for approved modifications or
construction of courthouse facilities may be made contingent upon
local appropriations or gifts in money or in kind for the support
of the modifications or construction.

(e) Nothing in this article may be construed to mandate
funding for the West Virginia CourtCourthouse Facilities
Improvement Fund or to require any appropriation by the
Legislature.

§29-26-7. West Virginia Courthouse Facilities Improvement
Authority authorized to issue bonds and pay debt
service on bonds with funds from West Virginia
Courthouse Facilities Improvement Fund.

(a) The authority is expressly authorized to issue bonds and
pay debt service on bonds pursuant to the provisions of this
article with funds deposited into the West Virginia Courthouse
Facilities Improvement Fund.

(b) The bonds shall be authorized to be issued by the
authority pursuant to the provisions of this article, and shall be
secured, shall bear such date and shall mature at such time, not
exceeding thirty years from the date of issue, shall bear interest
at such rate or rates, including variable rates, be in such
denominations, be in such form, carry such registration privileges,
be payable in such medium of payment and at such place or places
and such time or times and be subject to such terms of redemption
as the authority may authorize. The bonds of the authority may be
sold by the authority, at public or private sale, at or not less
than the price the authority determines. The bonds shall be
executed by manual or facsimile signature by the chair of the
authority and attested, manually or by facsimile signature, by the
secretary of the board. In case any officer whose signature, or a
facsimile of whose signature, appears on any bonds ceases to be
such officer before delivery of such bonds, such signature or
facsimile is nevertheless sufficient for all purposes the same as
if he or she had remained in office until such delivery.

(c) After the authority has issued bonds authorized by this
article and after the requirements of debt service and all
associated funds have been satisfied for the fiscal year for which
moneys deposited in the West Virginia Courthouse Facilities
Improvement Fund have been pledged, including coverage and reserve
funds established in connection with the bonds issued pursuant to
this article, any remaining balance in the West Virginia Courthouse
Facilities Improvement Fund may be used by the authority in its
discretion to fund approved modification or construction of
courthouse facilities and to pay expenses of the authority in
administering the provisions of this article, all in accordance
with the provisions of this article, on a cash basis. All amounts
deposited in the West Virginia Courthouse Facilities Improvement
Fund shall be pledged to the repayment of the principal, interest
and redemption premium, if any, on any bonds or refunding bonds
authorized by the provisions of this article. The authority may
further provide in any trust agreement for priorities on the funds
deposited into the West Virginia Courthouse Facilities Improvement
Fund as may be necessary for the protection of the prior rights of
the holders of bonds issued at different times under the provisions
of this article.

§29-26-8. Trustee for bondholders; contents of trust agreement;
pledge or assignment of revenues and funds.

For bonds issued pursuant to the provisions of this article,
in the discretion of the authority, any bonds, including refunding
bonds issued by the authority, may be secured by a trust agreement
between the authority and a corporate trustee, which trustee may be
any bank or trust company within or without the state. Any such
trust agreement may contain such binding covenants with the holders
of such bonds as to any matter or provisions as are deemed
necessary or advisable to the authority to enhance the
marketability and security of such bonds and may also contain such
other provisions with respect thereto as the authority may
authorize and approve. Any resolution adopted by the authority or
any trust agreement may contain a pledge or assignment of revenues
to be received in connection with the financing.

§29-26-9. Refunding bonds.

Any bonds issued by the authority pursuant to the provisions
of this article or any other provision of this code and at any time
outstanding may at any time and from time to time be refunded by
the authority by the issuance of its refunding bonds in such amount
as it may deem necessary to refund the principal of the bonds so to
be refunded, together with any unpaid interest thereon, to provide
additional funds for the purposes of the authority, and to pay any
premiums and commissions necessary to be paid in connection
therewith. Any such refunding may be effected by whether the bonds
to be refunded have then matured or thereafter mature, either by
sale of the refunding bonds and the application of the proceeds
thereof for the redemption of the bonds to be refunded thereby or
by exchange of the refunding bonds for the bonds to be refunded
thereby. Such refunding bonds shall be issued in conformance with
the provisions of this article related to issuance of bonds.

§29-26-10. Obligations of authority undertaken pursuant to this
article not debt of state, county, municipality or
any political subdivision.

(a) Bonds, including refunding bonds, issued under the
authority of this article and any other obligations undertaken by
the authority pursuant to this article, do not constitute a debt or
a pledge of the faith and credit or taxing power of this state or
of any county, municipality or any other political subdivision of
this state, and the holders and owners thereof have no right to
have taxes levied by the Legislature or the taxing authority of any
county, municipality or any other political subdivision of this
state for the payment of the principal thereof or interest thereon,
but such bonds and other obligations are payable solely from the
revenues and funds pledged for their payment as authorized by this
article unless the bonds are refunded by refunding bonds issued
under the authority of this article, which bonds or refunding bonds
shall be payable solely from revenues and funds pledged for their
payment as authorized by this article.

(b) All such bonds, and all documents evidencing any other
obligation, shall contain on the face thereof a statement to the
effect that the bonds or such other obligation as to both principal
and interest are not debts of the state or any county, municipality
or political subdivision thereof, but are payable solely from
revenues and funds pledged for their payment as authorized by this
article.

§29-26-11. Negotiability of bonds issued pursuant to this article.

Whether or not the bonds issued pursuant to this article are
of such form or character as to be negotiable instruments under the
Uniform Commercial Code, such bonds are negotiable instruments
within the meaning of and for all the purposes of the Uniform
Commercial Code, subject only to the provisions of the bonds for
registration.

§29-26-12. Exemption from taxation.

All bonds of the authority, and all interest and income
thereon, are exempt from all taxation by this state and any county,
municipality, political subdivision or agency thereof, except
inheritance taxes.

Neither the members or officers of the authority or of any
authority, agency or office, nor any person executing the bonds
issued pursuant to the provisions of this article, are liable
personally on such bonds or subject to any personal liability or
accountability by reason of the issuance thereof.

§29-26-14. Cumulative authority as to powers conferred;
applicability of other statutes and charters;
bonds issued pursuant to this article.

The provisions of this article relating to the issuance of
bonds shall be construed as granting cumulative authority for the
exercise of the various powers herein conferred, and neither the
powers nor any bonds issued hereunder are affected or limited by
any other statutory or charter provision now or hereafter in force,
other than as may be provided in this article, it being the purpose
and intention of this article to create full, separate and complete
additional powers. The various powers conferred herein may be
exercised independently and notwithstanding that no bonds are
issued hereunder.

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(NOTE: The purpose of this bill is to provide the West
Virginia Courthouse Facilities Improvement Authority with the
ability to issue bonds to raise funds for paying the costs of
approved modifications or construction of courthouse facilities;
add bond-related activities to the powers of the authority; provide
that moneys from the West Virginia Courthouse Facilities
Improvement Fund may be disbursed for payment of debt service on
bonds; authorize the authority to issue bonds; set circumstances
for bond issuance and potential terms of bonds; authorize repayment
of debt; permit bonds be secured by trust agreement and set certain
parameters; permit refunding bonds; clarify that bonds by the
authority are not a pledge of faith and credit of the state,
county, municipality or other subdivision of the state; declare
bonds issued as negotiable instruments under the Uniform Commercial
Code; exempt all bonds by the authority, as well as interest and
income thereon, from taxation by the state or any subdivision;
declare that certain individuals have no personal liability in
relation to issuance of bonds; and grant cumulative authority for
exercising certain powers, including if no bonds are issued by the
authority.

Strike-throughs indicate language that would be stricken from
the present law, and underscoring indicates new language that would
be added.